Question 3 A cartel model of oligopoly predicts that ________. ? Firms will choose output independently ? Firms will choose prices independently ? Firms will never cooperate ? Firms act together to set output and price like a monopoly ? Firms never have incentives to deviate from the cartel agreement Question 4 Manufacturers' brands are also called ________. ? Channel brands ? Retail brands ? National brands ? Private labels ? Exclusive brands
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Q) In oligopoly a) the largest four firms are likely to have a small market share b) the price is likely to equal marginal revenue c) firms will continue to produce in the long run if price is less than average cost d) firms may collude or compete depending on their assumptions about their customers
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1. Characteristics of oligopoly An oligopolistic market structure is distinguished by several characteristics, one of which is either similar or identical products. Which of the following are other characteristics of this market structure? Check all that apply. Market control by many small firms Market control by a few large firms Mutual dependence Mutual interdependence Difficult entry
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One key difference between an oligopoly market and a competitive market is that oligopolistic firms are price takers while competitive firms are not. Oligopolistic firms sell their product at a price equal to marginal cost while competitive firms do not. Oligopolistic firms can affect the profit of other firms in the market by the choices they make while firms in competitive markets do not affect each other by the choices they make. Oligopolistic firms sell completely unrelated products while competitive firms do not.
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